PHILADELPHIA, Sept. 17, 2024 -- NetDiligence®, a leader in cyber risk readiness and response solutions, is excited to announce the release of its fourteenth annual Cyber Claims Study. This eagerly awaited study offers an in-depth analysis of real-world data breaches and cyber-related loss incidents reported by prominent cyber insurance providers. Sponsoring this year's study are RSM, Experian, KYND, and Constangy, Brooks, Smith & Prophete, LLP.
This year's report presents data from over 10,000 cyber insurance claims spanning 2019 to 2023. Remarkably, when NetDiligence first published this study in 2010, it analyzed fewer than 100 claims. The study's rapid growth is a testament to the contributions of leading insurers and the critical insights it provides to the cyber insurance industry and beyond.
The claims losses analyzed within come from organizations across seven revenue groupings and 18 business sectors, covering 25 causes of loss and 13 types of data. With over 20 different data breakdowns, the report covers key metrics such as crisis management, legal expenses, business interruption, recovery, total incident costs, data exposure, and ransomware impact.
This year, the report once again highlights distinct challenges for small to medium-sized enterprises (SMEs) and large companies. One of the standout findings is the growing financial burden on SMEs, particularly due to the surge in Business Email Compromise (BEC) incidents. The average cost of a BEC claim skyrocketed from $84,000 in 2022 to a staggering $183,000 in 2023.
The report also underscores the varying impact of cyber risk across different sectors. In SMEs within the Professional Services sector, average incident costs surged from $199,000 in 2022 to $307,000 in 2023. In contrast, Healthcare SMEs saw their average incident costs continue to decline, from $583,000 in 2021 to $173,000 in 2023.
"Healthcare and manufacturing SMEs seem to be benefiting from a modest drop in incident costs," said Mark Greisiger, President of NetDiligence. "However, the financial services sector is facing a sharp rise in incident costs, reminding us that cyber risks evolve differently across industries."
Greisiger also expressed gratitude for the study's data contributors, saying, "We extend our sincere thanks to our cyber insurance partners, whose continued participation enables us to provide these invaluable insights to the cyber risk and insurance community."
The findings from the 2024 Cyber Claims Study will be presented at the upcoming NetDiligence Cyber Risk Summit in Philadelphia on October 1, 2024.
Additionally, two upcoming webinars will dive deeper into the report's findings and the state of the cyber insurance market:
Webinar 1: Cyber Claims Study 2024: A Review of Findings and Frontline Insights
Date: Thursday, October 10, 2024 at 11:00 AM EDT
Click here to register
Webinar 2: Cyber Claims Study 2024: State of the Market
Date: Thursday, October 24, 2024 at 11:00 AM EDT
Click here to register
To download the full report and dive deeper into these findings, visit NetDiligence.com, or log into your cyber insurer's eRiskHub® portal.
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